MIRA INFORM REPORT
|
Report No. : |
354388 |
|
Report Date : |
14.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHYAM CENTURY FERROUS LIMITED |
|
|
|
|
Registered
Office : |
Village Lumshnong, PO: Khaliehriat, District Jaintia Hills-793210,
Meghalaya |
|
Tel. No.: |
91-3655-278215 / 16 / 18 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
12.04.2011 |
|
|
|
|
Com. Reg. No.: |
13-008578 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 0.500 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L27310ML2011PLC008578 |
|
|
|
|
IEC No.: |
Not Divulged |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
Not Available |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer
of Ferro Alloys and Generation of Power. (Registered Activity) |
|
|
|
|
No. of Employees
: |
167 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (41) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
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|
Comments : |
Subject was established in the year 2011 and it is engaged in manufacturing of Ferro Alloys and generation of Power. The manufacturing unit is located at Byrnihat, Meghalaya. The company is selling its product across India. Pursuant to the Scheme of Arrangement between Star Ferro and Cement Limited (SFCL), and the Company along with their respective shareholders as approved by the Hon’ble High Court of Meghalaya at Shillong vide its order dated 31st March, 2015, all the assets and liabilities of the Ferro Alloys division (i.e. business and interest of SFCL in manufacture of Ferro Alloys including captive power plant at Byrnihat) have been transferred to and vested in the Company at their respective book values on a going concern basis with effect from 1st April, 2014 being the appointed date. The ratings draw strength from the experienced promoters with established group, availability of captive power plant and comfortable leverage ratios. The ratings also factor the decline in capacity utilization and moderation in profitability in FY15. However, rating strength is partially offset by exposure to volatility in finished goods prices, exposure to group companies and working capital intensive nature of operations. Trade relations are reported as fair. Payment terms are reported to be usually slow but correct. In view of aforesaid, the company can be considered for business dealings at usual trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long Term Bank Facilities=A- |
|
Rating Explanation |
Adequate degree of safety and low credit
risk |
|
Date |
29.07.2015 |
|
|
|
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank Facilities=A2+ |
|
Rating Explanation |
Strong degree of safety and low credit risk |
|
Date |
29.07.2015 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2015.
INFORMATION DECLINED BY
|
Name : |
Ms. S. Das |
|
Designation : |
Office Executive |
|
Contact No.: |
91-33-24484169 |
|
Date : |
09.12.2015 |
LOCATIONS
|
Registered Office : |
Village Lumshnong, PO: Khaliehriat, District Jaintia Hills-793210,
Meghalaya, India |
|
Tel. No.: |
91-3655-278215 / 16 / 18 |
|
Fax No.: |
91-3655-278217 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Ferro Alloy and
Power Plant EPIP Rajabagan, Byrnihat-793101, Meghalaya, India |
|
|
|
|
Corporate Office: |
Satyam Towers, 1st Floor, Unit No. 9B, 3 Alipore Road,
Kolkata – 700027, West Bengal, India |
|
Tel. No.: |
91-33-22484169/ 70 |
|
Fax No.: |
91-33-22484168 |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. Sajjan Bhajanka |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nag Raj Tater |
|
Designation : |
Director |
|
Date of Birth/Age : |
01.07.1952 |
|
Qualification : |
Commerce
Graduate |
|
Experience in special functional Area : |
He
is having over 38 years’ experience in Finance, Accounts and Taxation. |
|
Date of Appointment : |
09.06.
2014 |
|
|
|
|
Name : |
Mr. Aditya Vimalkumar Agarwal |
|
Designation : |
Director |
|
Date of Birth/Age : |
22nd
August,1989 |
|
Qualification : |
MBA |
|
Experience in special functional Area : |
He is 26 years of age and
a Commerce Graduate and Master’s in Business administration. |
|
Date of Appointment : |
01.04.2015 |
|
|
|
|
Name : |
Mr. Mangilal Jain |
|
Designation : |
Director |
|
Date of Birth/Age : |
14.07.1931 |
|
Qualification : |
ACA |
|
Experience in special functional Area : |
He has an experience of over
56 years and has worked in senior positions with various companies of repute.
He is an expert in the field of accounts and finance. |
|
Date of Appointment : |
01.04.2015 |
|
|
|
|
Name : |
Mr. Santanu Ray |
|
Designation : |
Director |
|
Date of Birth/Age : |
30.06.1947 |
|
Qualification : |
FCA |
|
Experience in special functional Area : |
He is a Chartered Account
and had worked at senior positions as well as consultant with several reputed
Companies and has vast experience in the field of research and education. He
has served as Chief Mentor at various Business Schools. |
|
Date of Appointment : |
01.04.2015 |
|
|
|
|
Name : |
Mrs. Plistina Dkhar |
|
Designation : |
Director |
|
Date of Birth/Age : |
01.01.1960 |
|
Qualification : |
Undergraduate |
|
Experience in special functional Area : |
She has an experience of
over 28 years and has been associated with the Company since 2013. She is
also Director of, Riangdo Veneers Private Limited., amongst others. |
|
Date of Appointment : |
01.03.2013 |
KEY EXECUTIVES
|
Name : |
Mr. V. K. Nageswara Rao |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Ms. Hasti Dosti |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mrs. Rachna Pareek |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Ms. S. Das |
|
Designation : |
Office Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2015
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter
Group |
|
|
|
|
|
|
|
|
97603576 |
43.93 |
|
|
39329080 |
17.70 |
|
|
136932656 |
61.63 |
|
|
|
|
|
Total shareholding of Promoter and Promoter
Group (A) |
136932656 |
61.63 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
249170 |
0.11 |
|
|
249170 |
0.11 |
|
|
|
|
|
|
57972568 |
26.09 |
|
|
|
|
|
|
8971773 |
4.04 |
|
|
17819165 |
8.02 |
|
|
227658 |
0.10 |
|
|
110250 |
0.05 |
|
|
47481 |
0.02 |
|
|
69927 |
0.03 |
|
|
84991164 |
38.25 |
|
Total Public shareholding (B) |
85240334 |
38.37 |
|
Total (A)+(B) |
222172990 |
100.00 |
|
(C) Shares held by Custodians and against
which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
222172990 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Ferro Alloys and Generation of Power. (Registered Activity) |
|
|
|
|
Brand Names : |
-- |
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|
Agencies Held : |
-- |
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|
Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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|
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|
Terms : |
Not Divulged |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
167 (Approximately) |
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Bankers : |
· State Bank of India · Oriental Bank of Commerce · Axis Bank Limited · HDFC Bank Limited
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Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Financial Institution : |
· North Eastern Development Finance Corporation Limited Nedfi House, G.S. Road, Dispur, Guwahati-781006, Assam,
India |
|
|
|
|
Auditors : |
|
|
Name : |
Kailash B. Goel and Company Chartered Accountants |
|
Address : |
70, Ganesh Chandra Avenue, 1st Floor, Kolkata-700013, West
Bengal, India |
|
Tel/Fax. No.: |
91-33-22151938 |
|
E-Mail : |
|
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Associates : |
·
Cement Manufacturing Company Limited ·
Megha Technical and Engineers Private
Limited ·
Meghalaya Power Limited · Star Ferro and Cement Limited |
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10,00,000 |
Equity Shares |
Re. 1/- each |
Rs. 1.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5,00,000 |
Equity Shares |
Re. 1/- each |
Rs. 0.500
Million |
|
|
|
|
|
a)
Reconciliation of the
shares outstanding at the beginning and at the end of the reporting period
31.03.
|
Particulars |
31.03.2015 |
|
|
(No. of Shares) |
(Rs. In Million) |
|
|
At
the beginning of the year |
500,000 |
0.500 |
|
Issued
during the year |
-- |
-- |
|
Outstanding
at the end of the year |
500,000 |
0.500 |
b) Terms/Rights attached to the Equity Shares and Notes
The company has only one
class of equity shares having par value of Re. 1/- each per share. Each holder of equity shares is
entitled to one vote per share. The company declares and pays dividends in
Indian rupees. The dividend proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting except
in case of interim dividend.
In
the event of liquidation of the company, the holders of equity shares will be
entitled to receive remaining assets of the company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
c) Details of Shareholders holding more than
5% shares in the company
|
Particulars |
No. of Shares |
Percentage |
|
Equity Shares of Re. 1/- each fully paid-up |
|
|
|
Star Ferro and Cement Limited |
500,000 |
100.00 |
|
Sajjan Bhajanka |
-- |
-- |
|
Sanjay Agarwal |
-- |
-- |
|
Mahabir Prasad Agarwal |
-- |
-- |
|
Brij Bhushan Agarwal |
-- |
-- |
|
Sanjay Agarwal |
-- |
-- |
# The existing share
capital would be cancelled upon allotment of shares pursuant to Scheme of
Arrangement
As per of the Company,
including its register of shareholders/members , the above shareholding represents
legal ownerships of shares.
|
Particulars |
31.03.2015 |
|
Share Capital - Pending
Allotment |
|
|
Shares to be alloted as
per Scheme of Arrangement (net of shares to be cancelled on allotment |
2216.73 |
|
|
|
|
Total |
2216.73 |
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
0.500 |
0.500 |
0.500 |
|
(b) Sahre Capital - Pending Allotment |
221.673 |
0.000 |
0.000 |
|
(c) Reserves & Surplus |
662.015 |
0.017 |
(0.004) |
|
(d) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
884.188 |
0.517 |
0.496 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
55.398 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
7.314 |
0.000 |
0.000 |
|
(c)
Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d)
long-term provisions |
3.700 |
0.000 |
0.000 |
|
Total
Non-current Liabilities (3) |
66.412 |
0.000 |
0.000 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
242.047 |
0.000 |
0.000 |
|
(b)
Trade payables |
48.807 |
0.000 |
0.000 |
|
(c)
Other current liabilities |
79.126 |
0.004 |
0.004 |
|
(d)
Short-term provisions |
4.902 |
0.003 |
0.000 |
|
Total
Current Liabilities (4) |
374.882 |
0.007 |
0.004 |
|
|
|
|
|
|
TOTAL |
1325.482 |
0.524 |
0.500 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
251.343 |
0.000 |
0.000 |
|
(ii)
Intangible Assets |
0.051 |
0.000 |
0.000 |
|
(iii)
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
337.350 |
0.000 |
0.000 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
112.385 |
0.000 |
0.000 |
|
(e)
Other Non-current assets |
0.449 |
0.491 |
0.000 |
|
Total
Non-Current Assets |
701.578 |
0.491 |
0.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
358.440 |
0.000 |
0.000 |
|
(c)
Trade receivables |
122.685 |
0.000 |
0.000 |
|
(d)
Cash and cash equivalents |
32.446 |
0.033 |
0.500 |
|
(e)
Short-term loans and advances |
110.333 |
0.000 |
0.000 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
623.904 |
0.033 |
0.500 |
|
|
|
|
|
|
TOTAL |
1325.482 |
0.524 |
0.500 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
1159.061 |
0.000 |
0.000 |
|
|
|
Other Income |
0.039 |
0.042 |
0.039 |
|
|
|
TOTAL |
1159.100 |
0.042 |
0.039 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
353.522 |
0.000 |
0.000 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(77.997) |
0.000 |
0.000 |
|
|
|
Employees benefits expense |
54.983 |
0.000 |
0.000 |
|
|
|
Other expenses |
657.779 |
0.014 |
0.014 |
|
|
|
TOTAL |
988.287 |
0.014 |
0.014 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
170.813 |
0.028 |
0.025 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
33.462 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
137.351 |
0.028 |
0.025 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
46.398 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL
ITEMS |
(2.823) |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
88.130 |
0.028 |
0.025 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
34.909 |
0.007 |
0.006 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
53.221 |
0.021 |
0.019 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
106.44 |
0.04 |
0.05 |
|
|
|
Diluted |
0.24 |
0.04 |
0.05 |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term borrowings |
16.416 |
0.000 |
NA |
|
|
|
|
|
|
Cash Generated from Operations |
44.943 |
(0.010) |
NA |
|
|
|
|
|
|
Net
Cash generated from Operating Activities |
25.458 |
(0.017) |
NA |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
4.59 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
14.74 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.92 |
5.34 |
5.00 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
0.05 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.35 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.66 |
4.71 |
125.00 |
STOCK
PRICES
|
Face Value |
Re. 1.00/- |
|
|
|
|
Market Value |
Rs. 8.00/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
0.500 |
0.500 |
0.500 |
|
Reserves & Surplus |
(0.004) |
0.017 |
662.015 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
0.496 |
0.517 |
662.515 |
|
|
|
|
|
|
Long-term borrowings |
0.000 |
0.000 |
55.398 |
|
Short term borrowings |
0.000 |
0.000 |
242.047 |
|
CURRENT MATURITIES OF
LONG-TERM DEBTS |
0.000 |
0.000 |
16.416 |
|
Total
borrowings |
0.000 |
0.000 |
313.861 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.474 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
0.000 |
0.000 |
1159.061 |
|
|
|
|
|
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
0.000 |
0.000 |
1159.061 |
|
Profit |
0.019 |
0.021 |
53.221 |
|
|
|
|
4.59% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10589213 |
11/08/2015 |
110,000,000.00 |
NORTH EASTERN DEVELOPMENT FINANCE CORPORATION LIMITED |
NEDFI HOUSE, G.S.
ROAD, DISPUR, GUWAHATI- |
C63285332 |
|
2 |
10590338 |
15/06/2015 |
530,000,000.00 |
ORIENTAL BANK OF COMMERCE |
LARGE CORPORATE
BRANCH, 6TH FLOOR, OM TOWERS, 32 |
C63879001 |
CORPORATE INFORMATION
Shyam Century Ferrous
Limited (the Company) is a public company domiciled in India and incorporated on
12.04.2011 under the provisions of the Companies Act, 1956. Pursuant to the
Scheme of Arrangement between Star Ferro and Cement Limited (SFCL), the Company
and their respective shareholders as approved by the Hon’ble High Court of
Meghalaya at Shillong vide its order dated 31st March, 2015, all the assets and
liabilities of the Ferro Alloys division (i.e. business and interest of SFCL in
manufacture of Ferro Alloys including captive power plant at Byrnihat) have
been transferred to and vested in the Company at their respective book values
on a going concern basis with effect from 1st April, 2014 being the appointed
date. The Company is engaged in manufacturing of Ferro Alloys and generation of
Power. The manufacturing unit is located at Byrnihat, Meghalaya. The company is
selling its product across India.
SCHEME OF ARRANGEMENT
Pursuant to the Scheme of
Arrangement entered between your Company, Star Ferro and Cement Limited and
their respective shareholders, duly approved by the Hon’ble High Court of Meghalaya
at Shillong vide its order dated 31st March, 2015, the business of Ferro Alloys
unit of Star Ferro and Cement Limited along with captive power plant has been
demerged and all the assets and liabilities of the Ferro Alloys business
including the captive power plant attached thereto as also the investment in
equity of Meghalaya Power Limited have been transferred to and vested in the
Company at their book value on going concern basis with effect from 1st April,
2014 being the appointed date of demerger as approved. The Scheme although
effective from 10th April, 2015, being the date of filing of
certified copy of the order with the Registrar of Companies, has become
operative from 1st April, 2014 being the appointed date.
The main objective of the
demerger was to unlock shareholder value. In addition, the demerger shall have
focused attention on each of the segments and a more transparent benchmarking
of the companies with their peers in their respective industries, enabling the
investors to hold separate focused stocks. The figures for current year are not
comparable with figures of previous years due to effect of the scheme in
current year figures.
BUSINESS REVIEW
Up to March 31, 2014, the
ferro alloys business was conducted by Star Ferro and Cement Limited. Following
the demerger of the ferro alloys division of SFCL, the ferro alloys business is
being conducted by the Company. The ferro alloys business mainly comprises of
manufacturing of ferro alloys in Meghalaya and power generation via a captive power
plant. The Company manufactured 14,835 metric tonnes of ferro alloys in
2014-15. The Company is an ISO 9001:2008-certified organisation and believes in
complying with strict quality norms. Their product range includes: ferro
silicon and silico manganese and their primary market is India where they sell
100% of their production.
We endeavour to manufacture
high-quality products and deliver them within the stipulated time to our
clients. Quality raw material, cutting-edge equipment and stringent quality control
measures ensure the manufacture of qualitatively consistent products. Their
product range includes the highest quality ferro alloys, a key input for steel
industries, in line with the norms laid down by the Bureau of Indian Standards.
With multiple furnaces of sizeable capacities, the Company has the flexibility
to produce different types of ferro alloys as per market dynamics. This adds to
the competitive advantage of the organisation as different product mixes can be
maintained at the same time even while manufacturing low quantities. As a
designated consumer under the PAT cycle, we also achieved the target set for us
by BEE.
FUTURE OUTLOOK
The Indian Ferro Alloys
industry has a capacity of 5.15 million tonnes and accounts for 10% of the
world’s Ferro Alloys production. The industry has abundant rich Chrome Ore and
Manganese deposit but has not been globally competitive despite low manpower
cost mainly due to the various challenges faced by the Industry essentially on
account of high cost of electric power and power shortage, inadequate
transportation facilities for rapid transportation of ores from mines to
plants, lack of capital and technology.
There is stiff competition
from the producers and exporters of the Ferro Alloys in India. Exports from
India to China, South Africa and other countries constitute nearly 50% of the
market of the Ferro Alloys. China has become the largest consumer of Ferro
Alloys and thus has been dominant in the market. There is a wide fluctuation in
Ferro Alloys price in international market. The Global Ferro Alloys market is
anticipated to increase at a CAGR of 5.4%. by the FY2020. With the change in
the Government, the Indian industry is expected to grow at the rate of 8-10%
over the medium term and translate into enhanced business opportunities for the
overall industry.
India is expected to be one
of the highest in growth of Steel consuming nations in the next decade. With
this, Steel scenario globally and domestically is likely to be changed, the
consumption of Ferro Alloys will increase domestically and internationally in
coming years.
PERFORMANCE AND OPERATIONS REVIEW
Due to slower growth in
Global steel market output, the performance of Ferro Alloys remained dampened
and subdued during the year. Despite weak economy and intense market situation,
the Ferro Alloys segment posted a turnover of Rs. 1159.100 Million and profit
before tax stood at Rs. 88.130 Million. During the year the production was at
14,835 MT.
PART
I
STATEMENT OF STANDALONE UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER/ HALF YEAR ENDED SEPTEMBER 30, 2015
|
|
Particulars |
QUARTER ENDED Unaudited |
HALF YEAR ENDING Unaudited |
|
|
|
|
30.09.2015 |
30.06.2015 |
30.09.2015 |
|
1. |
a)
Net Sales/ Income from Operations (Net of Excise Duty) |
272.962 |
331.830 |
604.792 |
|
|
b)
Other Operating Income |
0.353 |
0.962 |
1.315 |
|
|
Total Income from Operations
(Net) |
273.315 |
332.792 |
606.107 |
|
|
|
|
|
|
|
2. |
Expenses |
|
|
|
|
|
a)
Cost of materials consumed |
80.967 |
66.826 |
147.793 |
|
|
b) Changes in inventories of finished goods,
work-in- progress and stock-in-trade |
(8.271) |
86.905 |
78.634 |
|
|
c) Employee benefits
expense |
13.212 |
13.330 |
26.542 |
|
|
d)
Depreciation and amortization
expense |
7.400 |
7.263 |
14.663 |
|
|
e) Other Expenses |
169.800 |
150.395 |
320.195 |
|
|
TOTAL EXPENSES |
263.108 |
324.719 |
587.827 |
|
|
|
|
|
|
|
3. |
Profit from Operations before other income, finance costs and
exceptional items (1-2) |
10.207 |
8.073 |
18.280 |
|
4. |
Other
Income |
0.005 |
-- |
0.003 |
|
5. |
Profit from ordinary activities before finance costs and exceptional
Items (3+4) |
10.212 |
8.073 |
18.285 |
|
6. |
Finance
costs |
8.373 |
10.853 |
19.226 |
|
7. |
Profit from ordinary activities after finance costs but before
exceptional Items (5-6) |
1.839 |
(2.780) |
(0.941) |
|
8. |
Exceptional
Items |
-- |
-- |
-- |
|
9. |
Profit/(Loss) from ordinary
activities before tax (7+8) |
1.839 |
(2.780) |
(0.941) |
|
10. |
Tax Expense |
0.372 |
(1.064) |
(0.692) |
|
11. |
Net Profit
/ Loss from ordinary activities after tax (9-10) |
1.467 |
(1.716) |
(0.249) |
|
12. |
Extraordinary
items |
-- |
-- |
-- |
|
13. |
Net Profit/(Loss) for the period (11-12) |
1.467 |
(1.716) |
(0.249) |
|
14. |
Share
of Profit/ (Loss) of associates |
-- |
-- |
-- |
|
15. |
Minority
Interest |
-- |
-- |
-- |
|
16. |
Net Profit/(Loss) after taxes, minority interest
and shares of profit/(loss) of associates (13+14-15) |
1467 |
(1.716) |
(0.249) |
|
17. |
a) Paid-up Equity Share
Capital (Face value of Re. 1/- each)) |
2221.73 |
2221.73 |
221.73 |
|
|
b) Equity Share Capital
Pending Allotment |
-- |
-- |
-- |
|
18. |
Reserves excluding
revaluation reserves as per Balance Sheet of previous accounting
year |
6617.67 |
6602.99 |
6617.67 |
|
19. |
Earnings per share (EPS) –
(non-annualized) Rs. |
|
|
|
|
|
- Basic |
0.01 |
(0.01) |
(0.001) |
|
|
- diluted |
0.01 |
(0.01) |
(0.001) |
|
|
Face Value of Shares Re.
1/- |
|
|
|
|
PART
II |
|
|
|
|
|
Select Information for the Quarter/ Half Year
ended 30th September, 2015 |
||||
|
A. |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
1. |
Public
Shareholding |
|
|
|
|
|
-
Number of Shares |
85240334 |
74752334 |
85240334 |
|
|
-
Percentage of Shareholding |
38.37 |
33.65 |
38.37 |
|
2. |
Promoter
and Promoter Group Shareholding |
|
|
|
|
|
Pledged/Encumbered |
|
|
|
|
|
No.
of shares |
3000000 |
3000000 |
3000000 |
|
|
-Percentage of Shares (as
a % of the total shareholding of promoter and promoter group) |
2.19 |
2.03 |
2.19 |
|
|
-Percentage
of Shares (as a % of the total share capital of the Company) |
1.35 |
1.35 |
1.35 |
|
|
|
|
|
|
|
|
Non-encumbered |
|
|
|
|
|
No.
of shares |
133932656 |
144420656 |
133932656 |
|
|
-Percentage of Shares (as
a % of the total shareholding of promoter and promoter group) |
97.81 |
97.97 |
97.81 |
|
|
-Percentage
of Shares (as a % of the total share capital of the Company) |
60.28 |
65.00 |
60.28 |
|
|
||||
|
|
INVESTOR
COMPLAINTS |
Quarter ended 30.09.2015 |
||
|
|
||||
|
|
Pending
as on |
Nil |
||
|
|
Received
during the quarter |
Nil |
||
|
|
Resolved
during the quarter |
Nil |
||
|
|
Pending
as on |
Nil |
||
REPORT OF SEGMENT REVENUE,
RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER/ HALF YEAR ENDED ON 30TH
SEPTEMBER, 2015
|
|
PARTICULARS |
QUARTER ENDED Unaudited |
HALF YEAR ENDING |
|
|
|
|
30.09.2015 |
30.06.2015 |
30.09.2015 |
|
1. |
Segment Revenue (Net) |
|
|
|
|
|
a)
Ferro Alloy |
272.962 |
331.830 |
604.792 |
|
|
b)
Power |
|
|
|
|
|
External Sales Revenue |
-- |
-- |
-- |
|
|
Inter-segment Revenue |
35.237 |
103.372 |
138.610 |
|
|
Total Segment Revenue |
308.199 |
435.202 |
743.401 |
|
|
Less : Inter-segment
Revenue |
35.237 |
103.372 |
138.610 |
|
|
Net Sales / Income from Operations |
272.962 |
331.830 |
604.792 |
|
|
|
|
|
|
|
2. |
Segment Results : Profit (+)/Loss
(-) before tax and Finance Cost |
|
|
|
|
|
a)
Ferro Alloy |
20.403 |
11.612 |
32.015 |
|
|
b)
Power |
(5.408) |
0.868 |
(4.540) |
|
|
Total |
14.995 |
12.480 |
27.475 |
|
|
Less :Finance
Cost
|
8.373 |
10.853 |
19.225 |
|
|
Add: Unallocable
(Expenses)/income net of unallocable Income/expenses |
(4.783) |
(4.407) |
(9.191) |
|
|
Total Profit/ (Loss) Before Tax |
1.839 |
(2.780) |
(0.941) |
|
|
|
|
|
|
|
3. |
Capital Employed (Segment Assets – Segment Liabilities) |
|
|
|
|
|
a)
Ferro Alloy |
586.752 |
546.960 |
586.752 |
|
|
b)
Power |
230.785 |
247.482 |
230.785 |
|
|
c) Unallocated |
66.403 |
88.030 |
66.403 |
|
|
Total |
883.940 |
882.472 |
883.940 |
NOTES:
1. The above result has been reviewed by Audit Committee and approved by the Board of Directors at their respective meetings held on 03rd November, 2015.
2. Pursuant to the Scheme of Arrangement approved by the Hon’ble High Court of
Meghalaya at Shillong vide its order dated 31st March, 2015 all the
assets and liabilities of the ferro alloy business and investment in Equity
shares of Meghalaya Power Limited have been transferred to and vested in the
company at their respective book values on a going concern basis w.e.f. 1st
April, 2014, being the appointed date. Therefore, the figures for the quarter/
half year ended 20th September, 2014 have been recasted to give
effect to the Scheme of Arrangement.
3. The figures for the quarter ended 30th September, 2015 are the balancing figures being difference between the unaudited figures in respect of the half year ended 30th September, 2015 and the quarter ended unaudited figures upto 30th June, 2015 which were not subject to limited review.
4. Figures of the previous period have been regrouped and reclassified to confirm to the classification of current period, wherever necessary.
Statement of Assets and Liabilities (Stand-alone)
|
Particulars |
As at |
|
|
|
30.09.2015 |
|
|
|
|
|
|
A. EQUITY AND LIABILITIES |
|
|
|
1.
Shareholders Funds |
|
|
|
a] Share Capital |
222.173 |
|
|
b] Share Capital Pending Allotment |
-- |
|
|
c] Reserves and Surplus |
661.767 |
|
|
Sub-total –
Shareholders’ funds |
883.940 |
|
|
|
|
|
|
2. Non-current
Liabilities |
|
|
|
a] Long Term Borrowings |
46.830 |
|
|
b] Deferred tax Liabilities (Net) |
6.442 |
|
|
c] Long Term Provision |
4.723 |
|
|
Sub-total -
Non-current Liabilities |
57.995 |
|
|
|
|
|
|
3. Current Liabilities |
|
|
|
a] Short term Borrowings |
210.514 |
|
|
b] Trade Payables |
59.596 |
|
|
c] Other Current Liabilities |
71.291 |
|
|
d] Short Term Provision |
3.875 |
|
|
Sub-total - Current Liabilities |
345.276 |
|
|
TOTAL - EQUITY
AND LIABILITIES |
1287.211 |
|
|
|
|
|
|
B ASSETS |
|
|
|
1. Non-current assets |
|
|
|
a] Net Fixed assets |
237.213 |
|
|
b]
Non-current investments |
337.350 |
|
|
c]
long Term loans and Advances |
112.259 |
|
|
d]
Other non-current assets |
0.129 |
|
|
Sub-total – Non- current assets |
686.951 |
|
|
|
|
|
|
2.
CURRENT ASSETS |
|
|
|
|
Inventories |
246.093
|
|
|
Trade Receivables |
165.548
|
|
|
Cash & Bank Balances |
41.112
|
|
|
Short Term loans and advances |
147.507
|
|
Sub-total – Current Assets |
600.260
|
|
|
|
|
|
|
TOTAL - ASSETS |
1287.211 |
|
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
Contingent Liabilities not provided for in
respect of:– |
|
|
|
(a)
Bills discounted with banks |
1.786 |
0.000 |
|
(b)
Solvent surety given to Excise Department against differential excise duty
refund |
60.634 |
0.000 |
|
Total |
62.420 |
0.000 |
Note:
Based on discussion with the solicitors/favourable decisions in similar cases/legal
opinion taken by the company, the management believes that the company has a
good chance of success in cases mentioned here-in-above and hence, no provision
there against is considered necessary.
FIXED ASSETS:
Tangible Assets
·
Land
·
Buildings
·
Plant and Equipment
·
Furniture and Fixtures
·
Vehicles
·
Office Equipment
·
Computer Equipments
· Leasehold Improvements
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 66.79 |
|
|
1 |
Rs. 101.10 |
|
Euro |
1 |
Rs. 73.10 |
INFORMATION DETAILS
|
Information Gathered
by : |
NYA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
IND |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
41 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.